DUBLIN--(BUSINESS WIRE)--The "Energy Storage System Market: Analysis By Technology, By End User, By Region Size & Forecast up to 2029" report has been added to ResearchAndMarkets.com's offering.
In 2023, the global energy storage system market was valued at US$234.13 billion, and is forecast to reach US$376.75 billion by 2029.
The market's expansion may be ascribed to rising demand for energy storage and transportation, which is being fueled by the global adoption of renewable energy, and soaring expenditures in grids are expected to drive market growth in the coming years. Furthermore, the rapidly expanding demand for energy around the world is expected to drive further expansion in the global energy storage system market in the future. The global energy storage system market value is projected to grow at a CAGR of 8.51%, during the forecast period of 2024-2029.
Market Segmentation Analysis:
By Installations: Growing demand for efficient and competitive energy resources is likely to propel market growth over the coming years. Thus, surging the demand for energy storage system installations. In addition, changing consumer lifestyle and a rising number of power outages are projected to propel utilization in the residential sector. Of the additional capacity estimated to be installed, more than half is expected to be devoted to energy-shifting applications consisting of utility-scale energy storage solutions to perform arbitrages and provide capacity to meet demand peaks.
By Technology: Pumped Hydro segment acquired majority of share in the market in 2023 as there are ongoing investments in North America and Asia Pacific to modernize energy infrastructure and boost on-grid capacity are projected to benefit the pumped hydro market. Whereas, the Electromechanical Storage segment has the fastest CAGR as the growing demand for dependable and efficient energy storage systems has prompted the use of electromechanical energy storage system.
By Ends User: Utilities segment acquired majority of share in the market in 2023, due to increased investment in utility size power plants. In addition, the utilities industry is growing due to an increase in construction projects such as decentralized renewable power plants, rural electrification projects, and commercial buildings.
Whereas, Non Residential segment is expected to have the highest CAGR in the future as the commercial and industrial (C&I) sector is using renewable energy sources like solar and wind power more and more to power their own buildings. So, the C&I sector is likely to use energy storage systems more and more to increase the amount of renewable energy it uses.
By Region: Asia Pacific energy storage system market enjoyed the highest market share in 2023, primarily can be traced mostly to the region's rapidly expanding demand for energy as a result of rapid urbanization. The rapid growth in industrialization in the countries such as India, China, Korea, and so on is also accelerating energy consumption on a huge level that is also projected to contribute to the market growth in the region. Rapid urbanization and population increase are also taking place in the developing countries, increasing the demand for power.
India plans to have 275 GW of total wind and solar capacity, as well as 72 GW of hydroelectricity and 15 GW of nuclear power, by 2027. Also, the global cumulative ESS market installations is segmented by region (The US, Germany, UK, China and Rest of the World). China and the US became the largest markets, accounting for over half of the global installation in 2023.
Global Energy Storage System Market Dynamics:
Growth Drivers: With reference to renewable energy sources, energy storage systems are complementary to solar and wind energy production as they help address the issue of weather intermittency, which is a major problem in renewables at both the local and grid levels. Therefore, an increase in demand for sustainable energy sources would probably trigger higher demand for energy storage system. Further, the market is expected to increase due to rising demand for electric vehicles, upsurge in investments in renewable energy, mounting home improvement, higher energy costs, surge in the demand for batteries, etc.
Challenges: The supply chain for energy storage systems involves various components, raw materials, manufacturing processes, and global logistics. Energy relies on a large number of outsourced components which allows it to focus more on the value-added activities such as design and engineering. The other challenge that energy storage system market faces is safety risks associated with lack of proper infrastructure, etc.
Trends: A major trend gaining pace in energy storage system market is Thermal Energy Storage (TES). Thermal energy storage entails storing and releasing thermal energy for later use, allowing energy consumption to be shifted to more efficient or cost-effective time periods. TES systems are critical in the integration of renewable energy sources into the grid.
Because renewable energy generation, such as solar and wind, is intermittent and weather dependent, TES assists in overcoming the fluctuation and mismatch between energy supply and demand. More trends in the market are believed to augment the growth of energy storage system market during the forecasted period include, government initiatives, technology advancements, sustainability, etc.
Competitive Landscape and Recent Developments:
The global energy storage system market is fragmented, with just a few players of varying sizes depending on their positioning along the value chain. Tesla, Pylon and BYD are among the top three residential ESS solution suppliers globally.
Key players of global energy storage system market are:
- Toshiba
- ABB Group
- Siemens
- SolarEdge Technologies
- Hitachi
- Electrovaya
- NextEra Energy
- The AES Corporation
- Vistra Corp.
- BYD
- Alpha ESS
- Sungrow Power Supply Co.
- Convergent Energy and Power
The key players are constantly investing in strategic initiatives, such as new product launches, introducing their products to emerging markets and more, to maintain a competitive edge in this market. For instance, in January 2024, Convergent Energy and Power announced that the company has over 800 MW/1 GWh of energy storage and solar-plus-storage systems operating or under development, which is equivalent to the power consumed by approximately 750,000 homes.
Convergent has over US$1 billion invested in or committed to systems in operation or under development. On the other hand, in March 2024, AlphaESS Malaysia Factory has reached a significant milestone with the completion of its first shipment. AlphaESS Malaysia proudly hosted its first shipment ceremony, celebrating the successful delivery of 192 SMILE-G3-BAT-8.2P batteries to Europe.
Key Topics Covered:
1. Executive Summary
2. Introduction
3. Global Market Analysis
3.1 Global Energy Storage System Market Analysis
3.2 Global Cumulative Energy Storage System Market Installation Analysis
3.3 Global Energy Storage System Market Technology Analysis
3.4 Global Energy Storage System Market End User Analysis
4. Regional Market Analysis
4.1 Asia Pacific Energy Storage System Market Analysis
4.2 North America Energy Storage System Market Analysis
4.3 Europe Energy Storage System Market Analysis
4.4 Rest of the World Energy Storage System Market Analysis
5. Impact of COVID-19
6. Market Dynamics
6.1 Growth Drivers
6.1.1 Growing Demand for Renewable Energy
6.1.2 Rising Demand for Electric Vehicles
6.1.3 Upsurge in Investments in Energy Sector
6.1.4 Mounting Home Improvement
6.1.5 Higher Energy Costs
6.2 Challenges
6.2.1 Potential Disruptions in the Supply Chain
6.2.2 Lack of Proper Infrastructure
6.2.3 Entry Barrier
6.3 Market Trends
6.3.1 Thermal Energy Storage (TES)
6.3.2 Government Initiatives
6.3.3 Technology Advancements
6.3.4 Sustainability
7. Competitive Landscape
7.1 Global Energy Storage System Market Players: Vertical Integration Comparison
7.2 Global Residential ESS Shipments Players by Market Share
7.3 Global Energy Storage Market Players: Battery Delivery Comparison
7.4 Global Energy Storage System Market Players: Product Offerings
7.5 Global ESS and PCS Market Players: Supplier Comparison
8. Company Profiles
- Toshiba
- ABB Group
- Siemens
- SolarEdge Technologies
- Hitachi
- Electrovaya
- NextEra Energy
- The AES Corporation
- Vistra Corp.
- BYD
- Alpha ESS
- Sungrow Power Supply Co.
- Convergent Energy and Power
For more information about this report visit https://www.researchandmarkets.com/r/o5pfj0
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